Despite Trump Tariffs, Foxconn’s $900 million mega-AI plant in Mexico will be finished within a year

Foxconn’s exciting mega AI server plant near Guadalajara, Mexico, is on track to be completed within a year, according to Jalisco Governor Pablo Lemus Navarro. That’s great news, even with the potential for new tariffs from President Donald Trump.

Hon Hai Precision Industry Co., Foxconn’s official name, is investing around $900 million to build the largest assembly plant in the world for servers powered by Nvidia Corp.’s state-of-the-art GB200 AI chips.

The project will take place in two friendly phases: first, they’ll expand an existing Foxconn facility in El Salto, and then they’ll construct a new plant nearby. Governor Lemus mentioned that construction “should be finished in a year,” and they’re hopeful that the plant will open either late this year or early 2026.

Foxconn started enhancing its server-related business in Mexico during Trump’s first term as a smart way to navigate US-China tensions. While proposed tariffs of 25% on imports from Mexico could affect costs for Foxconn and others, Lemus is optimistic, noting that new investments in the state are thriving and are likely to increase in 2025 compared to 2024.

“What various plants have shared with us is that, no matter what happens with the tariffs announced by President Trump, they’re committed to continuing their work in Mexico,” Lemus said cheerfully. “We haven’t seen any slowdown in investments at all; in fact, they keep pouring into Jalisco!”

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